KDK Fund has a mission to invest in companies and projects that bring a solid return while falling in line with the standards of the fund. The fund will look to create an income stream for its investors, inspire confidence in the companies and projects it invests in, and provide a blueprint for those looking to invest capital in worthwhile projects while at the same time restricting capital from projects and companies that don't go along with the fund's standards. There will be both fundamental and technical (price) requirements and analysis for each investment. This plan will continuously evolve as the fund grows and different opportunities arise. Feel free to make constructive comments and suggestions as the fund feels collaboration can improve the plan.
Please check back with this page periodically to see any changes made to this post. Updates to the post will be communicated when changes occur.
Current holdings include Realty Income, Ford, AT&T, Sysco, and Powershares Build America Bond ETF.
The companies or projects that the fund will invest in will have business plans with which the fund can align itself. Continuous success in execution of those plans is expected. Some topics that the fund looks at are below.
Management Behavior
- How does management run the business? The fund will use product management, wage behavior, resource management, and profitability as some of the metrics.
Wage Behavior
- Does the company pay wages that create a balanced work atmosphere? Does the company allow its workers to require support from governmental agencies and taxpayers because of its wage structure? What is the wage difference between the CEO and the average worker if the CEO is not the founder? Are stock options evenly distributed throughout the company?
Resource Management
- Does the company have policies in place that promotes stable resource management? The fund is looking to invest in companies that are making an honest effort in curbing its resource use. Does the company promote innovation within its resource usage for long term success?
Profit Growth
- What is the company's profit growth targets? Does the company have a plan, that when executed, creates profit for the company? Does the company make its money through a unique and protected product or service that provides the profit?
Dividends
- Does the company have a stable and growing dividend? How would compounding affect the continuous accumulation of dividends? The fund expects dividend growth overall and dividend reinvestment growth to expand as time goes on.
Options
- Are Options available to trade both on the selling and buying side? The Fund plans to use call selling in order to provide the fund with another revenue stream. If it makes sense, the fund will use the revenue from the call selling to purchase more shares.
Where To Invest In?
Stock/ETF Shares
- First Investments are in shares of stock and ETF securities. This provides a relatively stable environment for the fund to grow. The fund will grow from stock appreciation, and consistent growth in dividend payments
KDK Options
- The Fund will use KDK Options to trade aggressively looking for 5X gains. The plan is to only use a small percentage of the fund for trading options. The fund will look to momentum news and strong technical analysis for each trade.
Showing posts with label Profit growth. Show all posts
Showing posts with label Profit growth. Show all posts
Sunday, August 17, 2014
Thursday, November 14, 2013
Thanksgiving Gives A Peek Into Corporate Ethos (Walmart, Costco)
There are some stores that are now opening during Thanksgiving. Wal-mart is one of these stores. Costco, one of the KDK Fund's planned purchases for 2014, is not. The focus of this article is going to be on why these actions are happening including revenue generation needs by the companies, wage needs by the employees, and profit needs by investors. It is also important to note that in reality, finding a deal and shopping is far more appealing that spending time with family and friends for a large segment of the American population.
The need for more revenue in this economic environment is taking on a new paranoia for some companies. Wal-mart is one of these companies. The recent quarter showed a slowing of growth and the guidance was not good. Needing to be open on Thanksgiving is essential for the company to increase revenue. In comparison, Costco's revenues have been steady. Even as they know they might be missing out on some sales revenue, it won't affect their guidance for the quarter. This level of leadership shown is important in running the company. Employees, customers, and investors know that they are getting a satisfactory level of performance without having to open on Thanksgiving.
Employee wage needs are high in places like Wal-mart. Because the average associate wage is low, working on Thanksgiving affords the employee to pick up some extra hours and some extra wages. With the holiday season upon them, the employees of Wal-mart know all to well the stress of needing to get extra hours to pay for extras like gifts. This need for more wages is something that Wal-mart is banking on when staffing stores open on Thanksgiving. Most employees literally cannot say no to working on Thanksgiving. Conversely, because Costco's associate wage level is higher, the need for stores to be open so employees can make more money is lessened. This way, Costco can continue to execute their business plan as well as take time off during the Thanksgiving holiday.
Investors (you and I) are hungry for more profits. Because of this demand that we put on businesses, some have decided to be open on Thanksgiving. Wal-mart's decision to be open on Thanksgiving has been given an endorsement by investors as there has been no negative reaction within the markets. Staying open on Thanksgiving will help meet investor demands for meeting profit expectations. There are pension funds, 401K funds, other retirement funds, and other investment capital that are depending on Wal-mart to be open on Thanksgiving in order to make profit numbers. On the flip side, because Costco's business plan is clear as to profit expectations, investors are regularly satisfied with the numbers both on the revenue side and profit side. It is interesting to see how the same stakeholders do not demand the same action from Costco as they do from Wal-mart.
When Thanksgiving comes, understand that stores that are open and stores that are not open are simply projecting their business ethos. It is a peek into what drives the decision making process at these particular companies. The combination of need for more revenue, wages, and profits drives companies like Walmart to be open on Thanksgiving. It is their business model and ethos and can be considered accepted and approved by all the stakeholders (management, employees, and investors) in the company. For now, Costco's business model and ethos allows it to stay closed on Thanksgiving. The company should still make their numbers, the employees still get the day off with enough wage earnings to enjoy the day, and investors can still feel confident that profits will be solid. That ability to execute on all three levels is admirable. Managers, employees, and investors who value the meaning behind Thanksgiving should be thankful for companies like Costco and question exactly what is going on at companies like Walmart that being open on Thanksgiving is more of a necessity for management, employees, and investors than anything else.
** KDK Fund does not have any current relationship with any of the companies mentioned in this article. It does plan to purchase shares of Costco in 2014. **
The need for more revenue in this economic environment is taking on a new paranoia for some companies. Wal-mart is one of these companies. The recent quarter showed a slowing of growth and the guidance was not good. Needing to be open on Thanksgiving is essential for the company to increase revenue. In comparison, Costco's revenues have been steady. Even as they know they might be missing out on some sales revenue, it won't affect their guidance for the quarter. This level of leadership shown is important in running the company. Employees, customers, and investors know that they are getting a satisfactory level of performance without having to open on Thanksgiving.
Employee wage needs are high in places like Wal-mart. Because the average associate wage is low, working on Thanksgiving affords the employee to pick up some extra hours and some extra wages. With the holiday season upon them, the employees of Wal-mart know all to well the stress of needing to get extra hours to pay for extras like gifts. This need for more wages is something that Wal-mart is banking on when staffing stores open on Thanksgiving. Most employees literally cannot say no to working on Thanksgiving. Conversely, because Costco's associate wage level is higher, the need for stores to be open so employees can make more money is lessened. This way, Costco can continue to execute their business plan as well as take time off during the Thanksgiving holiday.
Investors (you and I) are hungry for more profits. Because of this demand that we put on businesses, some have decided to be open on Thanksgiving. Wal-mart's decision to be open on Thanksgiving has been given an endorsement by investors as there has been no negative reaction within the markets. Staying open on Thanksgiving will help meet investor demands for meeting profit expectations. There are pension funds, 401K funds, other retirement funds, and other investment capital that are depending on Wal-mart to be open on Thanksgiving in order to make profit numbers. On the flip side, because Costco's business plan is clear as to profit expectations, investors are regularly satisfied with the numbers both on the revenue side and profit side. It is interesting to see how the same stakeholders do not demand the same action from Costco as they do from Wal-mart.
When Thanksgiving comes, understand that stores that are open and stores that are not open are simply projecting their business ethos. It is a peek into what drives the decision making process at these particular companies. The combination of need for more revenue, wages, and profits drives companies like Walmart to be open on Thanksgiving. It is their business model and ethos and can be considered accepted and approved by all the stakeholders (management, employees, and investors) in the company. For now, Costco's business model and ethos allows it to stay closed on Thanksgiving. The company should still make their numbers, the employees still get the day off with enough wage earnings to enjoy the day, and investors can still feel confident that profits will be solid. That ability to execute on all three levels is admirable. Managers, employees, and investors who value the meaning behind Thanksgiving should be thankful for companies like Costco and question exactly what is going on at companies like Walmart that being open on Thanksgiving is more of a necessity for management, employees, and investors than anything else.
** KDK Fund does not have any current relationship with any of the companies mentioned in this article. It does plan to purchase shares of Costco in 2014. **
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